Many types of mortgage financing allow for GIFT FUNDS to be used towards down payment. The basics?
* Gift funds need to come from a blood relative (“donor”)

* The “donor” needs to be willing to provide the “source” of the funds. This can be a bit tricky as many times the relative does NOT want to provide bank statements or asset statements to show where the money came from. There is no way around this so prepare for it from the beginning.

* The “donor’s” bank statement can not show any LARGE deposits into it in the statement period. The reason for this is the underwriter wants to see that the “gift funds’ are not borrowed funds requiring a repayment.

* The “donor” will sign a gift letter stating they are gifting the funds from Account “X” and that the funds do not have to be repaid.

* Those funds should then be wired directly to the escrow company handling the transaction. This helps to avoid having to “paper trail” the funds through the borrowers account and again to escrow. If the “donor” sends the funds directly to the escrow company it eliminates this step.

Remember, on FHA loans, 100% of the down payment AND closing costs can be gifted.

Be sure to check on the specific type of CONVENTIONAL loan you are qualified for as to the allowable “gift funds” per your program.

Ready to get started? You can apply ONLINE conveniently at www.fcfs.net

Surprisingly, it’s easy. First, and foremost, you need to complete a mortgage application. You can do that by going online to www.fcfs.net and click APPLY ONLINE! This will walk you through the full application and it is emailed back to me as soon as you hit submit! OR you can call the office at 602.294.9288 and we can do one together over the phone.

You should have the following items handy when we do the application:
Current paycheck stub

Last years W2

Current asset account statements (checking, savings, 401K etc)

Once I have the application, I will pull a copy of your credit report.

We now have a full picture of where you currently stand and an idea of what you qualify for.

We will spend the time together to review your application, your credit report and what you qualify for. What down payment you should be prepared for? What the new mortgage payment will likely look like? Things that you should consider as you start your house hunting? As well as cover any questions you may have.

Once you have a loan approval, you are ready to hit the streets with your realtor! Need an Arizona realtor referral? We can help with that as well! You can see a list of our preferred realtors on the website as well at http://fcfs.net/custompage-view.aspx?id=28

We will provide the neccessary PreQualification Letter that your realtor will need in order for you to make an offer. Many times, as you begin looking at Arizona homes, we may need to re-visit your application so we can compare what you find, with what the mortgage numbers will look like. Ensure that you still have the same comfort level as when you began looking.

Once you have an accepted offer from the seller… we are off an running! This is when your Arizona mortgage loan submission process begins. Stay tuned for further blog posts on how the Arizona mortgage loan submission process works!

Arizona Mortgage Question of the Day: Can I qualify for an Arizona mortgage if I have co-signed on a loan for another person?

Well, kind of.

There is a NEW Arizona mortgage underwriting rule for this. IF you are qualifying for an Arizona mortgage and you have co-signed (for example for your son to buy a car) BOTH you and your son need to be on the NOTE to repay. Your son makes the payments on time each month (out of his OWN individual account) then he can provide cancelled checks to show HE makes the car payment. By doing so, you can qualify for your Arizona mortgage without having that payment included in your debt.

IF, instead, you initiate the loan FOR HIM, you are on the ONLY borrower on the NOTE, then you have to qualify for your new Arizona mortgage WITH the car payment regardless of who makes the payment.

It always angered me that my father would never co-sign on my behalf, to establish credit. After what I have seen on individuals mortgage credit reports, I now understand his concern. Although we all know, I would have made all of my payments diligently 🙂 …… the alternative possibilities are scary.

I would always discourage anyone from co-signing on behalf of another person, however, in certain circumstances it can not be avoided. IF this is the case- just ensure you are BOTH on the NOTE.

Miliatry veterans that have used their VA Eligibility to purchase a home can easily streamline refinance!

In many cases there is no appraisal, no income or asset verification to qualify!

The new VA Funding fee is .50% which is financed on top of the eligible loan amount and the closing costs can be rolled into the loan.

AND there is a huge resale advantage! With interest rates being unbelievably low, upon resale, an NEW eligible veteran could assume the existing loan at the low refinanced rate. All things being equal, when it comes to resale time, the assumable low rate VA loan could be the deciding factor between houses!

Spread the word to all the veterans out there. First, THANK YOU for keeping us safe, second, time to pay less on your American Dream!

Can I still qualify to refinance my Arizona mortgage if I am under water?

Remember, the Obama administration has recommended to Fannie Mae and Freddie Mac to allow eligible borrowers to refinance up to 100% of their property value through the HomeStability refinance option.

Most homeowners who are under water are because they have a 1st AND 2nd mortgage. The home stability option will ONLY allow you to refinance the first mortgage balance. For example, the house value is $200K. The first mortgage balance is $200K. The second mortgage balance is $50K. Both Fannie Mae and Freddie Mac will allow you to refinance the $200K balance (if eligible) under the home stability option and not be required to carry new private mortgage insurance! This is huge! It is still here AND it won’t be around forever!

In order to determine initial eligibility, the borrower needs to reference BOTH of these websites:

The borrower enters their home mortgage information into both sites. The site will return an answer as to whether Fannie Mae or Freddie Mac “owns” the mortgage. Based on that information we can determine the specifics as to the eligiblility to refinance under this option. Once this option is gone, borrowers will not be able to refinance unless they have 20% equity in their homes. This is an opportunity we cannot pass up!

There are ALOT of caveats to this loan so be sure to contact me if you have questions!